dAlt+Q Current Attempt in Progress Oriole Repairs has 200 auto-maintenance service outlets nationwide. It performs...
60.1K
Verified Solution
Link Copied!
Question
Accounting
dAlt+Q Current Attempt in Progress Oriole Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,580,000 (that is, $77,900 per service outlet). Sales mix is determined based upon total sales dollars. Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) Sales Dollars Needed Per Product Oil changes Brake repair $ $ 4
Oriole Repairs has 200 auto-maintenance service outlets nationwide it performs primarily two lines of service ofl changes and brake repair. Oilchange-related services represent 80% of its sales and provide a contribution margin ratio of 20%,8 rake repair represents 20% of its sales and provides .45% contribution marsin ratio. The company's fixed costs are $15,580,000 (that is. $77,900 per strvice ovtlet. Sales mix is determined based upon total sales dollars. Calculate the dollar amount of each type of service that the company must provide in order to break even. (Uhe Weighted-Avenase Contribution Margin Ratio rounded to 2 decimal ploces esg, 0.25 and round final answers to 0 decimal places, es. 2.510. The company has a desired net income of $54,000 per service outlet. What is the dollar am ount of eachifoced senvice that must rounded to 2 decimal ploces es. 0.25 and round final answers to o decinal places, es. 2.510)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!